One of the most commonly asked questions to insurance agents from truck drivers is, “what is physical damage and why do I need it?” It’s a good question as the name doesn’t do a great job describing the coverage. You could see physical damage listed on a quote or your policy next to its hefty price tag. Essentially: Physical damage is a very important coverage that we recommend every truck driver purchase.
What is the most important asset you own as a trucking company? It’s your truck. You know how important it is to care for your truck–it’s the central part of your business! Physical damage is another way to protect your most valuable asset.
Physical damage covers the repairs to your truck based on its actual cash value if you are in an accident. For example, if a trucker listed the value of his 2014 Peterbilt at $20,000–and that’s the actual cash value of the truck–then that’s how much the carrier will cover for repairs if it’s in an accident. It’s important you accurately list the value of your truck when discussing physical damage.
Physical damage, though, is a concoction of Collision coverage and Comprehensive coverage. Collision coverage will repair your truck in the event of an accident. Its partner, Comprehensive coverage, will repair your truck in the event of “anything other than collision (OTC).” “OTC” is an event that mankind can’t control such as a hurricane or a tornado.
The price tag for PD can be high relative to another coverage listed on a quote, but don’t let that hinder you from including it in your policy. It’s so important you protect your truck in the same way you protect your personal car or your home. Some insurance agents may quote you without physical damage to provide a lower quote and beat their competition. This is a major red flag. If an insurance agent omits physical damage coverage from your quote without informing you of their decision and providing you a valid reason, we recommend you talk to an expert at Lionshield Insurance another that’ll will ensure you are covered for what you need.
Trucking is a business in which your most precious asset can be damage at any time, so make sure you protect yourself and your truck with physical damage.